|Fed Policymakers Turn Hawkish On Rate Hike |
Los Angeles CA, (Tangible Investments) - by James O'Dell - Gold and Silver prices were lower in early trading on Monday with Gold down 0.46 percent to $1,335.60 an ounce after easing $12.10 or 0.89 percent on Friday to finish the week at $1,341.80 an ounce.
The price of Silver is down 2.06 percent to $18.93 an ounce, after sliding $0.43 or 2.18 percent on Friday to end the week at $19.33 an ounce while the Gold/Silver ratio rose to 69.42. Platinum is down 0.27 percent to $1,114.50 an ounce and Palladium is down 0.56 percent to $706.50.
The week began with Gold edging higher as the dollar softened after retail sales and the Producer Price Index (PPI) missed expectations the previous week, which lowered expectations for a rate hike later this year. The day showed no improvement in economic data, as the Empire State manufacturing surveyshowed the business conditions index reading falling to a minus 4.21 from plus 0.55 in July.
Gold rose in early trading on Tuesday, bolstered by a softer dollar that reached a seven week low overnight, but comments from Fed officials sparked a rebound in the dollar knocking Gold off its intraday highs. New York Fed President William Dudley told Fox Business that a rate hike by the Fed is gettingcloser possibly as early as September. Dudley seems to think the market is underpricing the potential of a rate hike due to his expectation that the economywill recover further in the second-half.
The yellow metal rose on Thursday, bolstered by a weaker dollar after minutes from the July meeting of the Federal Open Market Committee (FOMC) showed policymakers were split over an early rate hike. While officials were largely upbeat on the economy and labor market, many said that a decline in future hiringwould argue against any near term rate hike.
On Friday, Dallas Fed President Robert Kaplan, said that he still sees little room to maneuver on rates. But despite the clearly hawkish message from the Fed all week, the markets are still pricing in just a 20 percent chance for a rate hike in September.That drops to less than a 50 percent chance for a move by year-end, says BNP Paribas. "Still range bound, Gold looks to break through USD $1,360 as thepossibility of a September rate rise tempers," said MKS PAMP Group, in a note.
Meanwhile, U.S. Mint Principal Deputy Director Rhett Jeppson will be hosting a one-day numismatic forum on Oct. 13 in Philadelphia, in an effort to boost interest in coin collecting. Further details will be forthcoming, according to Tom Jurkowsky, head of the Mint’s Office of Corporation Communications.
“We want to explore and try to find new ways to stimulate interest in coin collecting,” said Jurkowsky. “Coins connect and touch people. They provide links to our country’s financial fabric. Coins are metallic footprints of our nation’s history.” The U.S. Mint will be celebrating its 225th anniversary next year.
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